Accounts receivable
The total money owed to a business by its customers for work already done.
Why it matters
The quality and aging of accounts receivable determines invoice eligibility, available advance amounts, and exposure to chargebacks.
Related terms
Related article: What is invoice factoring?
Related reading
Sources
- International Factoring Association - International Factoring Association. Accessed 2026-05-19.
- Secured Finance Network - Secured Finance Network. Accessed 2026-05-19.
Financial disclaimer. This page is educational only and is not financial, legal, tax, accounting, or credit advice. Factoring terms vary by provider and contract. Read the full disclaimer.